Change of conditions

Gold was found in Stringers Creek in 1863. By 1866 numerous mines within the valley were opened. The Long Tunnel Company became the greatest single producer of gold in Victoria. It closed in 1913. Walhalla once supported 15 hotels, 40 shops, two breweries, four churches, a school, jail and its own newspaper. Timber getters denuded the hillsides in supplying mining companies with 34 000 tons of timber a year.

The narrow-guage railway arrived from Moe in 1910, just in time to see the town die. The two major mines closed in 1911 and 1913 and the trains which were to have brought prosperity were used to cart away Walhalla's buildings. By 1920 there were only 250 people left. The railway closed in 1944 but is being rebuilt as a tourist railway.

The permanent population of Walhalla today is fewer than 20, although there are many more temporary residents and visitors on holidays and weekends.